mdpizzuto1
Level 2

I encountered the same issue today. After performing some research, including relevant provisions of the CARES Act, Although defined as non-substantial legal authority, I turned to IRS Publications (i.e., charitable contributions, NOLs) to gain a general and practical understanding of the issues and the IRS' position.

See, pp. 2-3 of IRS Publication 536, "How To Figure an NOL" and "Non-business deductions (outlined in the Worksheet at line 6)." Regarding line 6, the instructions specifically indicate to enter as positive numbers certain deductions including: (1) the standard deduction (if you do not itemize deductions) AND (2) charitable contributions if you take the standard deduction.

Unfortunately, pro-series tax software only adds back the standard deduction but not the related above the line charitable contributions deduction thus generating an NOL carryover equal to the amount of such deduction. To eliminate the NOL carryover, I entered the following overrides on the NOL Classification Worksheet in the relevant taxpayer's 2020 proseries tax software file: (1) at line 44, in the amount of the "above the line" charitable contribution deduction; and (2) at line 49, I added the line 44 override amount to the system generated Deductions Total. Then, I deleted the NOL from the taxpayers 2021 proseries tax software file.

Although IRS Publications are non-authoritative, the instruction to add back "charitable contributions if you take the standard deduction" appears to evidence the IRS position on the matter, in particular that  such above the line deduction cannot be used to generate an NOL carry-forward. 

Although I hope the above comments help, this posting is not tantamount to providing tax or legal advice, but merely memorializing my comments on the issue for others to consider. Please perform your own research and formulate your own conclusions on the matter.